Confirm cookie choices
Cookies are pieces of code used to track website usage and give audiences the best possible experience.
Use the buttons to confirm whether you agree with default cookie settings when using

Turkey’s leading utility Enerjisa Enerji to upgrade network with EBRD loan

By Olga Rosca

  • EBRD provides US$ 110 million loan in Turkish lira to Enerjisa Enerji
  • Upgrade to distribution network of leading utility to include smart grid, smart meters and renewables
  • Company developed new corporate finance framework for green investments

The European Bank for Reconstruction and Development (EBRD) is extending a new long-term loan equivalent to US$ 110 million, in Turkish lira, to Enerjisa Enerji, one of the country’s largest utilities, to finance its latest modernisation plans.

Enerjisa Enerji provides electricity distribution and retail in Turkey and currently serves more than 21 million people. The company is a joint venture between Sabanci Holding and E.ON, each holding 40 per cent, with the remaining 20 per cent being a free float on Borsa Istanbul.

The new EBRD loan will finance the company’s investment plan for 2021-25, which focuses on upgrading the network. The plan includes the introduction of smart metering and smart grid systems, digitalisation of the network, improvements to the reliability of power supply, integration of renewables, and environmental, health and safety measures.

The modernisation will also help reduce losses, leading to direct annual savings of up to 30,405 tonnes of CO2, which is equivalent to the yearly average electricity consumption of around 60,000 homes.

In addition, Enerjisa Enerji, in cooperation with the EBRD, has developed a green finance framework, paving the way for more sustainable investments in line with the Green Bond Principles of the International Capital Market Association and the Green Loan Principles of the Loan Market Association.

Furthermore, as part of its cooperation with the EBRD, Enerjisa Enerji will create training and employment opportunities for young people and join forces with the education authorities to encourage more women to pursue technical and vocational education. The company has also committed to working with Turkey’s Vocational Qualifications Authority to develop a market-oriented certification mechanism and a series of curricula for electrical technicians.

Michael Moser, CFO of Enerjisa Enerji, said: “I am very proud that, together with the EBRD, we have written a new chapter in Enerjisa’s green financing history. We take sustainability very seriously and are taking action on all levels. The new world of sustainable energy, with renewable energy as the key energy source, will only be possible with huge investments in energy infrastructure. In this respect, our newly established, seven-year green financing framework with the EBRD is another milestone in a further push for sustainable energy solutions and huge investment in the Turkish energy system. I appreciate the cooperation with the EBRD and their deep understanding of the Turkish energy market.”

“We are pleased to expand and strengthen our cooperation with Enerjisa Enerji,” said Aida Sitdikova, EBRD Director of Energy Eurasia. “In addition to backing its investments in the modern and efficient power grid we also work together to promote greater career and training opportunities for young people and women. We applaud Enerjisa’s leadership in attracting green finance and look forward to seeing the company successfully tap into the green bonds and loans market, as envisaged in its newly developed green corporate finance framework.”

The EBRD is a leading institutional investor in Turkey. It has invested more than €14 billion in 353 projects in the country since 2009, with the overwhelming majority of those projects being in the private sector.

GDPR Cookie Status